Siemens, Alstom approve merger terms

Siemens and Alstom have entered into a business combination agreement to merge their rail operations, the companies announced late last week.

The measure follows the memorandum of understanding announced in September 2017. The business combination agreement sets the merger's terms and conditions, according to the companies' press release.

The primary aim of the merger is to compete with growing competition from China.

Under the agreement, Siemens board member Roland Busch would become chairman of the combined entity.

"Roland Busch is the best person we could nominate for this important task," said Joe Kaeser, Siemens AG president and chief executive officer. "Not only is he an expert in global mobility of many years standing. As a member of the Atos board of directors, he has also gained valuable experience in the integration and management of German-French industrial collaborations. Precisely this consideration was of key importance to me in his nomination to this responsible position."

Yann Delabriere, lead director of Alstom's board, would become vice chairman of Siemens Alstom, under the merger proposal.

Last year, the two companies announced Henri Poupart-Lafarge will serve as chief executive officer of the combined company, as well as a board member.

Closing is expected by the end of 2018.